earnings results presentation - 3q13

8/14/2019 Earnings Results Presentation - 3Q13

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Romeu Crtes DominguesPresidente do Conselho de Administrao

Dickson Esteves TangerinoPresidente

Octvio FernandesVice-Presidente de Operaes

Paulo Bokel

Diretor Financeiro e de Rel com InvestidoresEmerson Leandro GasparettoDiretor de Radiologia e Mtodos Grficos

[email protected].: (011) 4197-5410Fax: (011) 4197-5516

www.dasa3.com.br

TELECONFERENCES

PortugueseDate: 08/13/2013

Time: 10h00 (Braslia)Tel.: 11 2188-0155

Password: DASA

EnglishDate: 08/13/2013

Time: 12h00 (Braslia)Phone.: 1 (412) 317-6776

Password: DASA

DASA ON

Bovespa: DASA3Most recent quotation:

11/11/13: R$ 11.6

Average daily trade volume3Q13:

R$ 27.9 milllionMarket valueR$ 3.6 billion

US$ 1.6 biillion

Free Float: 97,2%

3rd QUARTER 2013EARNINGSGross Revenue grows 9.8%

EBITDA margin reaches 18.7%Net income grows 34.5%


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DISCLAIMER

This document contains forward looking statements that can be identified by words like hope,plan,expect, believe, seek, estimate and similar words. The information in this presentation

regarding forward looking statements of the Company, including business prospects, and operating,financial, and growth projections are only predictions based on management expectations regardingfuture performance. These estimates are highly dependent on the performance of the Brazilianeconomy, industry and international market conditions. Therefore, they are subject to change.


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3Q13 HIGHLIGHTS AND RECENT FACTSGROWTH

GROSS REVENUE reached R$ 716.7 million in 3Q13, a 9,8% growth compared to 3Q12 STRONG growth in HOSPITALS andLAB TO LAB 9 PSCS REMODELING delivered in 3Q13, and 6 in progress 2NEW MRIs and 1NEW CT in the quarter

QUALITY 38 PAPERS will be presented at RSNA 2013 (Radiological Society of North America)

21 LECTURES in the Brazilian Congress of Clinical Pathology

More than 200 MEDICAL EVENTS held this year

Beginning of operation of the LABORATORIAL GENETICS CENTER in Caxias (Rio de JaneiroState);

Call Center within PERFORMANCE TARGETS

SYSTEMSintegration;

RETURN FOR THE SHAREHOLDER EBITDA of R$ 120.7 million in 3Q13, 11.3% more than 3Q12, reaching a margin of 18.7%

OPERATING CASH FLOW of R$ 47.5 million in 3Q13,

CASH NET INCOME of R$ 50,0 million in 3Q13, 57.7% greater than 3Q12

SUCCESS of the Debentures Issuance


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GROSS REVENUE (R MILLION)

Gross revenue reached R$ 716.7 MILLION in 3Q13, a growth of 9.8%R$ 2,055.7 MILHES in YTD13,a growth of 9.0%

425.8

226.9

475.9

240.9

652.6

716.7

3Q12 3Q13

CLINICAL ANALYSISRID

1,236.8

648.9

1,370.8

684.9

1,885.7

2,055.7

YTD2012 YTD2013


34.8

%

65.2

%

33.3

%

66.7

%

34.4

%

65.6

%

66.4

%

33.6

%

9.8%

6.4%

11.8%

9.0%

5.5%

10.8%


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GROSS REVENUE | PATIENT SERVICE CENTERS

Higher volume of Clinical Analysis with NEW PAYERSHIGHER COMPLEXITY MIX (RID) elevates the average revenue per requisition

275.2

205.5

305.1

215.8

480.7

520.9

3Q12 3Q13


4

2.7

%

57.3

%

41.4

%

58.6

%

GROSS REVENUES (R$ MILLION) AVERAGE REVENUE PER REQUISITION AND

VOLUME (MILLIONS)

REQUISITIONS AVERAGE REQUISITIONS PRICE

3.7 3.3 3.5 3.8 3.8

130.5134.5 134.0 133.7

138.9

3Q12 4Q12 1Q13 2Q13 3Q13

6.4%

5.0%

10.8%


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Investments in MRI in So Paulo helped the RDI growthThere is a LARGE SCHEDULE AVAILABILITY, allowing the maintenance of growth

MRI | SUPPLY AND DEMAND/SP

NUMBER OF EXAMS DONE SCHEDULES AVAILABLE

2012 - 2013 2012 - 2013

SCHEDULE

AVAILABLE

SCHEDUL

EAVAILABLE


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Medical Relationship initiatives already yielding returns tracked by CRMDASAFOCUSon a specific group of RIDproducts

NUMBER OF REFERENCED EXAMS (MRISP) % OF EXAMS REQUESTED BY TOP 100(CT+MRI)

MEDICAL RELATIONSHIP INICIATIVES

2013 2013

NUMBER

OF

EXAMS

NUMBER

OF

EXAMS


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GROSS REVENUE | HOSPITALS

GROWTHof 16.1% despite operating with selectivityImpact of NEW CONTRACTS which began operations in 1Q13Increase in average ticket with implementation of NEW SERVICES and focus onINCREASING IN PROFITABILITY

46,3

13,4

52.4

16.859.6

69.2

3Q12 3Q13

22.4

%

77.6

%

24.2

%

75.8

%

GROSS REVENUES (R$ MILLION) AVERAGE REVENUE PER REQUISITION ANDVOLUME (MILLIONS)

CLINICAL ANALYSISRID REQUISITIONS AVERAGE REQUISITIONS PRICE

1.1 1.0 1.1 1.1 1.0

52.2 56.5 56.364.7 68.9

3Q12 4Q12 1Q13 2Q13 3Q13

16.0%

25.4%

13.3%


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GROSS REVENUE | LAB-TO-LAB

64.3

76.5

3Q12 3Q13

GROSS REVENUES (R$ MILLION)

4,8975,033

3Q12 3Q13

PERFORMANCE

15.8% increase in REVENUES per laboratoryFocus on GREATERCAPILLARITYand IMPROVING THE MIX

OF LABORATORIESAVERAGE REVENUELABORATORY (IN R$)

19.1%136


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GROSS REVENUE | PUBLIC HOSPITALS AND CLINICS

Growth due to 3 NEW CUSTOMERSSelectivity in the CHOICE OF NEW CUSTOMERS

48.1 50.2

3Q12 3Q13

GROSS REVENUES (R$ MILLION)

713

591

3Q12 3Q13

PERFORMANCE

COLLECTING SITEREVENUE PER

COLLETING SITES

4.4%

-122


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COSTS

PERSONNEL costs pressured by the increase in the number of employees and collective wageagreementsMATERIALSincrease in the number of exams and improvement in productivitySERVICES AND UTILITIES lower impact of medical compensation and renegotiation of contracts;

125.8 114.8 19.5% 19.5% 9.6%Personnel

116.2 106.7 18.0% 18.1% 8.9%Materials

165.2 152.4 25.6% 25.9% 8.4%Services and Utilities6.6 5.6 1.0% 1.0% 16.3%General

413.8 379.6 64.0% 64.5% 9.0%Cost of Service*

3Q13 3Q12 3Q13 3Q123Q13 x3Q12

In R$ Million% of Net

Revenues

Variation

%

* Not consider depreciation


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CLINICAL ANALYSIS

PRODUCTIVITY(test/ employee)

GROWTH(Tests)

UNIT COST100% 95%

105%95% 96%

100% 106%109% 118%

129%

100%108%

151%167%

178%

60%

80%

100%

120%

140%

160%

180%

200%

3Q09 3Q10 3Q11 3Q12 3Q13


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SG&A

GENERAL AND ADMINISTRATIVE call center insourcing, collective wage agreementand more control of hiring

112.0 101.6 17.3% 17.3% 10.3%General and Administrative

7.8 0.2 1.2% 0.0% 3191.8%Profit Sharing Program

(8.2) (1.4) -1.3% -0.2% 474.5%Other Operating Revenues / Expenses

111.7 100.4 17.3% 17.1% 11.3%Operating Expenses*

3Q13 3Q12 3Q13 3Q123Q13 x3Q12

In R$ Million % of NetRevenue

Variation%

* Not consider depreciation


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ACCOUNTING EBITDA (R$ MILLION)

18.4% 18.7%

0.0% 0.2%0.3%

0.0% -0.2%

EBITDA3Q12

Personnnel Materials Services andUtilities

General SG&A EBITDA3Q13

108.573.5

99.1 110.8120.7

18.4%13.4%

17.0% 17.6% 18.7%

0

20

4060

80

100

120

140

0.00%

2.00%

4.00%

6.00%8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

3T12 4T12 1T13 2T13 3T13Ebitda Ebitda Margin

3Q12 4Q12 1Q13 2Q13 3Q13


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INCOME TAX

* Withholding tax (current): Originally from financial income and withholding of gross revenue

34.0%

34,1%

2.9%

36.9%

12.1%

34,1%

34,1%

-10.6%

-14.3%

3Q

Income Tax Rate Permanentsadjustments intax booksIncome Taxes(FinancialStatements)

TaxLoss/Good willCompensationWithholding tax(current)/Income taxescash*

Other


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RECEIVABLES

Unbilled services (R$ million) Averagecollection period (days)

Provision Rule

91 to 120 days 25%

121 to 180 days 50%

181 to 360 days 75%More than 361 days 100%

(1) Index coverage = BDP balance/ expired > 120 days

R$ million 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Accounts receivable 409.7 398.0 423.7 415.9 432.4 376.8 448.2 467.2 480.7Past due 0-90 85.0 74.7 74.3 78.0 87.2 94.8 79.5 80.2 84.0Past due 91 - 120 11.3 10.1 10.7 10.8 8.3 16.1 14.1 9.6 13.7Past due (more than) 120 92.4 111.2 111.2 113.8 117.6 119.9 118.8 109.4 91.5Provisions (75.1) (103.9) (102.7) (106.1) (105.5) (109.2) (107.7) (95.0) (77.3)Total Receivables 523.3 490.1 517.1 512.4 540.0 498.5 552.9 571.3 592.6Coverage Index 81.3% 93.4% 92.4% 93.2% 89.7% 91.1% 90.7% 86.9% 84.5%

127.9 119.080.1 82.7 93.2 96.9

104.9

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

84.581.6

84.483.8

85.682.4

84.4

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13


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BALANCE SHEET MANAGEMENT

252.4

(429.8)

(679.5)

(856.9)

DEBT COMPOSITION (R$ million)

Cash and Cash Equivalents

DebtShort Term

DebtLong Term

Net Debt**

Operating cash flow is POSITIVE

STABLE NET DEBT compared to 2Q13

(*) Not consider R$ 30.1 million of the cash payment of So Paulo tax debts.

Neither consider the Financial Result gain of R$ 2.7 million

(**) Methodology adopted by fiduciary agent

Management Cash Flow (R$ Million) 3Q13

Accounting EBITDA 120.7

Operational working capital (31.1)

Other working capital accounts* (7.3)

Financial expenses (30.0)

Income tax (4.8)

Operational Cash Flow 47.5

Capex (31.4)

Free Cash Flow 16.1


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DEBT PROFILE

Covenants dec/12 jun/13 sep/13

Gross Debt 1,107.6 1,088.9 1,109.3

Net Debt 847.1 852.5 856.9

Ebitda (LTM) 407.6 392.0 404,1

Net Financial Expenses (LTM) 113.7 84.9 88.6

1) Net Debt / Ebitda = 2,0 3.6 4.6 4.6

Cash and Cash Equivalents 26.05 236.5 252.4

Debt Cost Evolution

Issuance Year Value(R$MM)

Rate

3 Issuance 2012 250.0 CDI + 0.80% p.a

4 Issuance 2013 450.0 CDI + 1.15% p.a

2 Issuance 2011 700.0 CDI + 1.40% p.a.

Term

5 years

5 years

4 years

AverageCost

% CDI

Pre BRLPre USD

CDI +

dec/12 jun/13 sep/13

111.08% 111.00% 111.00%

16.33% 16.25% 16.07%8.12% 8.24% 2.23%

1.25% 1.25% 1.25%

sept/13 + 4Debentures Issuance

111.00%

16.07%2.23%

1.22%

Financial Covenants

Debt Profile (3Q13)

R$ Milion

CDI +R$ 798.4MM

93.2%

Pre BRLR$ 3.5 MM

0.4%

Pre USDR$ 20.7 MM

2.4%

Pre BRLR$ 34.3 MM

4.0%

99.0

295.2 294.6 295.3

67.0

30.8

9.7

17.1

225.0 225.0

129.8

371.9

311.7 295.9

225.0 225.0

2013 2014 2015 2016 2017 2018

Debt Amortization Schedule

R$ Milion

Debentures (2 and 3 Issuance) DASA FINANCE


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ROIC (*)

ROIC has been impacted by INVESTMENTS MATURATION PERIOD(*) Considering current EBITDA

NOPAT LTM/mean(working capital + intangible assets + fixed assets value for Exchange of shares of DASA and MD1)

34% effective rate of Income Tax

17.4%14.2%

16.3%

11.7%

9.1%

7.6% 7.8% 8.3%

2011 1Q12LTM

2Q12LTM

3Q12LTM

2012 1Q13LTM

2Q13LTM

3Q13LTM


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CAPEX

3Q13:2NEW UNIT, 2MRI, 1CTR 31.4 MM in 3Q13

Opening and Expansionof PSCsR 35.5MM

Information TechnologyR 41.1MMEquipmentR 21.6 MM

32.9%

25.7%

41.4%

YTD

113.4

192.5

234.0

73.0

41.3 49.329.1

55.8

31.4

2010 2011 2012 1Q12 1Q13 2Q12 2Q13 3Q12 3Q13


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FINAL REMARKS Sustainable Growth

Maintenance of Strategy to improve business

Seek synergies in operations

Costumer portfolio, service, product and unit selection

Management System and Indicators

Cost, SGA and CAPEX discipline

Increase in Profitability

Progressive improvement of ROIC Price Policy


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INVESTORS RELATIONS NEXT EVENTS

DATE EVENT LOCAL4th-5th December Brazil Opportunities Conference (JP Morgan) So Paulo - Brasil9th-10th January Annual Latam Conference (Morgan Stanley) Miami - EUA

13rd-15th January Annual JP Morgan Healthcare Conference So Francisco - EUA28th January Santander Health Care Trip So Paulo - Brasil

7th-8th April BTG CEO Conference Londres - Inglaterra14th-15th May Itau CEO Conference Nova Iorque - EUA

31st January Bradesco Healthcare Day So Paulo - Brasil


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earnings results presentation - 3q13

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